Current preferences and future demand for denser residential environments

Abstract

This article assesses the future demand for denser, more walkable residential environments in the United States as a whole. A review of survey evidence on preferences is coupled with demographic projections and other trends to construct a demand projection for the period 2000 to 2010 and compare it with 1990 to 2000. It is possible to foresee a turnabout already under way. Households older than 45 show particular interest in more densely configured homes in more central locations. Passage of the massive baby boom generation into this age range focuses the growth of housing demand in sharp contrast to stagnant numbers at younger ages. Home buyers aged 45 and older who prefer denser, more compact housing alternatives will account for 31 percent of total homeowner growth during the 2000—10 period, double the same segment's market share in the 1990s.